May 12, 2026 / 4:19 PM EDT / CBS News

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The global oil supply shock stemming from the Iran war is scorching U.S. motorists and other consumers, new federal data makes clear.

Higher energy prices accounted for 40% of the total jump in inflation in April, when the Consumer Price Index surged at an annual rate of 3.8% — the fastest increase in nearly three years.

The index for gasoline prices last month was up more than 28% from a year ago, the Department of Labor found. Overall energy costs — which includes gas, heating oil and electricity — last month rose nearly 18% from a year ago.

For millions of workers, the spike in prices over the last two months means inflation is now outpacing wage growth, Wall Street analysts noted.

"That is a very clear illustration of the impact that higher energy prices are having in squeezing households' real wages," Brian Coulton, chief economist at Fitch Ratings, said in an email, warning that headline inflation could top 4% by the time the government…